From the BEEB "First-time buyers under 40 to get 20% off under Tory plan" see here
On closer inspection, it says doesn't say how this 20% off is guaranteed. Unless that means they will be capping prices. If not, why should the developers not just charge the full market rate? All be it, only to UK citizens, under 40s, first time buyers. My guess is, any "savings" from being granted permission to build on brownfield industrial sites, less green building regulations and no section 106 agreements will only be capitalised into greater profits for the building companies.
We've seen it all time and again. They own land give them money.
Would it not be better if the Government built and sold these houses themselves, but charge the site rental value in perpetuity?
That way, people get to own their own home for less than half the current selling price.
The Government gets to keep the value it creates by granting planning permission and infrastructure it builds. So land rent is not privatised.
Unlike Council Housing the owner would be responsible for the upkeep, and gets to keep the value of improvements made upon sale.
And because a site rent is paid every year, those homes would always be put to their best use. So, couples whose children had grown up and left, would be more likely to downsize.
All the economic benefits of council housing (see Singapore) but with none of the downsides.